Europe identified as the most complex payroll region in the world

NGA Human Resources, a global leader in HR and payroll services, has released the 2017 Global Payroll Complexity Index (GPCI), a business intelligence report that identifies the top payroll process and compliance threats of 2017, per country and region.
 
This is the third GPCI report from NGA Human Resources and the first published since 2014. It highlights the positive and negative impacts of factors, including the adoption of cloud technologies, managed payroll services, and the maturation of HR compliance regulations, on managing payroll and employee data.
 
The report includes responses and commentaries from nearly 3,000 professionals responsible for the reward and payment of employees in 48 countries. It was produced in collaboration with payroll bodies in Europe, North and South America, South Africa and Australia.
 
For Europe, key findings were as follows:
•       Europe is the most complex payroll region in the world
•       7 out of the top 10 most complex countries are in Europe
•       France, Italy & Belgium are most complex; Luxemburg the least
•       Number of data fields, payroll runs, and technical and legal updates required for compliance is highest in Europe; 37% of respondents say that updates “keep them awake at night”
•       Complexity has increased since 2014 where other regions have seen simplification
  
Some other notable observations of the 2017 Global Payroll Complexity Index:
 
Managing employee data: All organisations must provide payroll related information to local government departments to determine the social security and/or tax contribution of each citizen. Globally, companies must include an average of 16 data items per employee to the government in the mandated reports and declarations.
 
Consistent with the 2014 study, Western Europe still requires the highest number of employee data items for a net salary to be correctly calculated. Germany, France, Italy and Spain are most complex, requiring an average of 17 items. This highlights the need for highly accurate HR source data.
 
Managing payroll data: An average of 14 employee data items affect a net salary – little change to 2014. Italy, France and Poland top the parameter ranking for complexity, contrasting sharply with Canada and Switzerland at the bottom. Benefits and attendance have replaced tax and social security as the biggest contributors to payroll complexity.
 
Payroll calculation process: The majority of employers run payroll once or twice a month. Globally, North America and Oceania run the most payrolls per month, while South America and Asia run the least. In Europe, France and Italy report the most payroll runs each month.
 
Government reporting & declarations: On average, 16 data items per employee must be reported; a decrease from 20 in 2014. In South America and Europe the number is notably higher at 35; Italy, the Netherlands and France require the most.
 
To review the study click ngahr/payrollcomplexity-2017